World Bank calls for new WTO round

By Our Special Correspondent

NEW DELHI, OCT. 31. The World Bank joined the chorus for a new trade round under the World Trade Organisation (WTO), saying that removing barriers to trade could significantly boost the long- term prospects of the developing countries.

In its latest report on Global Economic Prospects, the World Bank has said that expanding trade could well increase annual gross domestic product (GDP) growth by an additional 0.5 per cent over the long-run and by 2015 could lift an additional 300 million people out of poverty in addition to the 600 million escaping desperate poverty with normal growth. The developing countries stand to gain an estimated $1.5 trillion of additional income in the ten years after liberalisation policies are initiated and developed countries could see their incomes rise by some $1.3 trillion, the report states.

The Bank has also suggested a strategy package for increasing world trade. Calling for a new WTO round, it said developed and developing countries should negotiate and get increased access to each other's markets. Besides, bilateral negotiations outside the WTO could also lead to a better reconciliation of labour and environmental issues which have become a matter of contention under the WTO.

Secondly, the Bank has suggested that the high-income countries should `in good faith' provide greater access to their markets to the poor countries and should also provide some aid and assistance to the poor countries to develop their trade competitiveness. For the developing countries, the suggestion if for reorienting policies which lead to increased trade competitiveness.

The Bank has also expressed the view that anti-dumping measures should be phased out over a period because these were basically protectionist measures which were being used both by the developed and the developing countries. Instead other safeguards to dumping should be thought of, is the suggestion.

The Bank also feels that the intellectual property rights (IPR) regime should be gradually implemented in all countries so that those with poor IPR protection records get time to adjust to the new regime.

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Section  : Business
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